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The ABC’s of CD’s
CDs – Certificates of Deposit – are fixed-income investments issued by banks and other lenders, and insured by the FDIC up to $100,000 ($250,000 on retirement accounts).
Here’s how it works: You give the bank a fixed amount of money for a fixed term. The bank gives you the principal, plus a fixed amount of interest. When the term expires, you receive your principal and accumulated interest.
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